Recalling its resolutions 45/242 of 21 December 1990,
46/191 A and 46/192 of 20 December 1991 and 47/203 of 22 December
1992,

Having considered the report of the United Nations Joint
Staff Pension Board for 1993 to the General Assembly and to the
member organizations of the United Nations Joint Staff Pension
Fund, chapter III of the report of the International Civil Service
Commission, and the related report of the Advisory Committee on
Administrative and Budgetary Questions,

I

PENSIONABLE REMUNERATION OF STAFF IN THE GENERAL
SERVICE AND RELATED CATEGORIES

Recalling that, in section III of its resolution 45/242,
the General Assembly requested the International Civil Service
Commission, in full cooperation with the United Nations Joint
Staff Pension Board, to submit recommendations to it at its forty-
sixth session in respect of the comprehensive review of the methodology
for determining the pensionable remuneration and consequent pensions
of staff in the General Service and related categories,

Also recalling section III of its resolution 46/191
A , section II of its resolution 46/192 and section III of its
resolution 47/203,

Noting with satisfaction that close cooperation between
the Commission and the Board has enabled the two bodies to complete
the comprehensive review in 1993 and to reach agreement on the
methodology for determining the levels of pensionable remuneration
of staff in the General Service and related categories,

1. Approves the recommendations made by the International
Civil Service Commission that the income replacement approach,
applying 66.25 per cent of the net pensionable salary, should
be used to determine the pensionable remuneration for staff in
the General Service and related categories, and that the revised
methodology should be implemented on the occasion of the first
adjustment of the salary scale, on or after 1 April 1994, subject
to the transitional measures applied on the occasion of the introduction
of the 1992 staff assessment scale;

2. Notes that the recommendations of the Commission
in paragraph 85 of its report do not eliminate the income inversion
anomaly and that further attention will need to be given to its
elimination;

3. Approves the recommendation that subsequent adjustments
of pensionable remuneration, until the introduction of the common
staff assessment scale in 1997, should be made on the basis of
a 1:1 interim adjustment procedure;

4. Approves also the procedure outlined in paragraph
44 of the report of the Commission for determining the common
staff assessment scale, with two separate sets of rates (single
and dependent);

5. Requests the Commission, in close cooperation with
the United Nations Joint Staff Board, as part of the comprehensive
review in 1996 of the methodology to determine the pensionable
remuneration and consequent pensions of staff in the Professional
and higher categories, to develop a common staff assessment scale
for the determination of the pensionable remuneration of all categories
of staff using the procedure approved in paragraph 4 above and
reflecting the latest available tax rates;

6. Requests also the Commission to recommend to the
General Assembly at its fifty-first session a common staff assessment
scale, together with the effective date and modalities for its
implementation, including appropriate transitional measures as
required;

7. Decides that, following the introduction of the common
staff assessment scale in 1997, the income replacement approach
should be used to determine the pensionable remuneration of staff
in the General Service and related categories on the occasion
of comprehensive salary surveys, with subsequent adjustment of
pensionable remuneration between comprehensive surveys to be made
on the basis of a 1:1 interim adjustment procedure;

8. Notes that the Commission, in close cooperation with
the Board, will continue to keep under review the matter of the
pensionable remuneration and consequent pensions of staff in the
General Service and related categories;

9. Amends, with effect from 1 April 1994, article 54
(a) of the Regulations of the United Nations Joint Staff Pension
Fund, as set out in annex I to the present resolution;

10. Amends also, with effect from 1 April 1994, paragraph
6 of annex I to the Staff Regulations of the United Nations, as
set out in annex II to the present resolution, and urges the other
member organizations of the United Nations Joint Staff Pension
Fund to take similar action to amend their Staff Regulations or
Staff Rules as appropriate;

II

ACTUARIAL MATTERS

1. Takes note of the observations of the United Nations
Joint Staff Pension Board in section III.C of its report on the
methodology and assumptions to be used in the actuarial valuation
of the United Nations Joint Staff Pension Fund as at 31 December
1993, in particular the changes in the rates of mortality for
pensioners and the rates of incidence of disability as set out
in paragraphs 108 and 109, respectively, of the report of the
Board;

2. Takes note also of the observations of the Panel
of External Auditors, the Pension Board and the Committee of Actuaries,
as well as the views of Member States, on the request made by
the General Assembly in its resolution 47/203 that the Board consider
the form in which it presents the results of the actuarial valuations,
and of the intention of the Board to report on this matter, following
discussion with the Board of Auditors, to the Assembly at its
forty-ninth session;

3. Takes note further of the observations of the Board
in section III.C of its report on matters related to the operation
and application of the transfer agreements that had been concluded,
effective 1 January 1981, between the United Nations Joint Staff
Pension Fund and the former Union of Soviet Socialist Republics,
Ukrainian Soviet Socialist Republic and Byelorussian Soviet Socialist
Republic;

III

ADMINISTRATIVE EXPENSES

1. Approves expenses chargeable directly to the United
Nations Joint Staff Pension Fund, totalling 39,291,900 United
States dollars net for the biennium 1994-1995, and an increase
in expenses of 365,400 dollars net for the biennium 1992-1993,
for the administration of the Fund;

2. Authorizes the United Nations Joint Staff Pension
Board to supplement the voluntary contributions to the Emergency
Fund, for the biennium 1994-1995, by an amount not exceeding 200,000
dollars;

IV

OTHER MATTERS

Takes note of the other matters dealt with in the report
of the United Nations Joint Staff Pension Board.

87th plenary meeting
23 December 1993

ANNEX I

Amendments to the Regulations of the United Nations
Joint Staff Pension Fund

Article 54

Pensionable remuneration

Replace paragraph (a) and subparagraph (i) thereof with the
following texts:

"(a) In the case of participants in the General Service
and related categories, pensionable remuneration shall be the
equivalent in dollars of the sum of:

"(i) The participant's gross pensionable salary, as determined
on the occasion of comprehensive salary surveys and subsequently
adjusted between such salary surveys, in accordance with the
methodology approved by the General Assembly and set out in appendix
A to these Regulations,".

Subparagraphs (ii) and (iii) remain unchanged; the reference
in paragraph (b) to "the appendix hereto" shall be changed
to "Appendix B hereto".

Add the following appendix to the Regulations of the Fund:

"Appendix A

"1. Methodology for determining the gross pensionable
salary for participants in the General Service and related categories

"(a) Effective 1 April 1994, and subject to paragraph
(b) below, the methodology for determining the gross pensionable
salary for participants in the General Service and related categories
on the occasion of comprehensive salary surveys shall be as follows:

"(i) 66.25 per cent of the net pensionable salary, determined
in accordance with the procedure approved by the International
Civil Service Commission, is calculated at each grade and step;

"(ii) The amounts in subparagraph (i) above are grossed
up, using the applicable staff assessment rates;

"(iii) The amounts in subparagraph (ii) above, divided
by 0.6625 and expressed in local currency, constitute the gross
pensionable salary.

"(b) The methodology in paragraph (a) above shall be
applied on the occasion of the first adjustment due to the application
of the interim adjustment procedure for net salaries on or after
1 April 1994, should such adjustment take place before a comprehensive
salary survey.

"The gross pensionable salary shall be adjusted on the
same date and by the same percentages as the net pensionable salary
of participants in the General Service and related categories
is adjusted."

The existing appendix shall become "Appendix B".

ANNEX II

Amendment to the Staff Regulations of the United
Nations

Add the following sentence at the end of paragraph 6 of annex
I to the Staff Regulations:

"The gross pensionable salaries of such staff shall be
determined in accordance with the methodology specified in article
54 (a) of the Regulations of the United Nations Joint Staff Pension
Fund and are shown in the salary scales applicable to such staff."